Leading lending and borrowing DeFi platform Aave has unveiled a governance proposal that could see Layer-1 blockchain Fantom integrate into its ecosystem following a successful community vote.
The proposal outlines the deployment of Aave v2 on the Fantom blockchain with the aim of expanding “lending to the Fantom community” and utilising available incentives to “bootstrap the launch of Aave on a new ecosystem”.
Chief marketing officer of Fantom – Simone Pomposi – submitted the proposal and outlined the reasons behind the decision, saying that Fantom seeks “to support Aave in its multichain expansion”.
We created a governance proposal to launch @AaveAave on Fantom.
Snapshot: https://t.co/wtndmcYmwX
Discussion: https://t.co/DhVers21QC
— Fantom Foundation (@FantomFDN) October 11, 2021
In a bid to attract development, the Fantom Foundation recently launched a 370M FTM incentive program, which has led to a sharp increase in the total value locked (TVL) and number of protocols choosing to build on Fantom.
Since the announcement of the incentives program on August 31, the TVL on Fantom has gone from $743m to an October 11 total of $5.5bn.
The TVL on Fantom is now over $5.5b – Data from DeFiLlama
According to additional data from DefiLlama, the spike in TVL has also seen Fantom overtake competing Layer-1 ecosystem Avalanche in the TVL rankings.
Fantom is performing well in other metrics too. It’s now sitting fourth behind Bitcoin in Layer-1 blockchain 1 day fees – a remarkable achievement considering the low cost of fees on Fantom.
An ironic twist of fate for Fantom
Many well-known protocols such as Yearn, SushiSwap, C.R.E.A.M., and Curve, have already deployed on Fantom and have contributed greatly to the growing TVL on the layer-1 blockchain.
Ironically enough, it was the emergence of an Aave fork named Geist Finance that sent the TVL into overdrive.
It became the first Fantom-native protocol to break the $1bn TVL barrier and has since continued its incredible growth – Geist now secures over $3b in assets.
Geist has an identical front-end to Aave, and being a fork, it utilises much of the same code and products as Aave to deliver lending and borrowing.
The success of Geist shows that there is rampant demand for lending and borrowing products on Fantom. Now, with a trusted protocol like Aave leading the way, it could lead to a drastic increase in the already burgeoning TVL on Fantom if the proposal is successful.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.